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Apple could be required to permit rivals to operate separate app stores on iPhones across Britain, following a ruling from the market watchdog.

This represents a major shift to Apple's well-known "walled garden" where apps can only be installed from the company's App Store.

But the Competition and Markets Authority has classified both the tech giants as having "dominant market position" - effectively saying they have significant control over mobile platforms.

Watchdog Findings

The regulator said the two companies "could be restricting progress and market rivalry".

But the regulator clarified it did not "find or assume misconduct" from the firms.

"The app economy contributes 1.5% of the British economy and supports around four hundred thousand positions, which is why it's crucial these markets work well for business," stated a senior official from the competition authority.

Around ninety to one hundred percent of UK mobile devices operate using Apple or Google's operating systems, creating what the authority calls an "virtual monopoly".

Based on recent analysis, 48.5% of UK mobile owners own an Apple device - which runs the iOS operating system - with the overwhelming bulk of the rest using the Android OS.

The Company's Reaction

The CMA's investigation examined how prominent the companies' own applications are versus rivals - as well as their browsers and platform software.

It is unclear what changes the regulator will look to request, but previously it published guidelines detailing potential measures it could take.

These include requiring it to be more straightforward for people to transition between Apple and Android phones, and for both companies to rank apps "fairly and openly" in their marketplaces.

Apple specifically may be compelled to permit third-party marketplaces on its products, and let people to install apps directly from developer sites.

This would follow comparable regulations in the European Union, which previously imposed measures against Apple for restrictive practices.

Apple warned the UK could face delays to receiving updates - as has happened in the EU - which the company blames on strict rules.

For example, some Apple Intelligence features which have been launched in other parts of the world are not available in the European market.

"We encounters fierce competition in every market where we do business, and we work tirelessly to create the finest offerings, services and user experience," the company said in a statement.

"The UK's adoption of European regulations would undermine that, resulting in consumers with weaker privacy and safety, delayed access to new features, and a fragmented, more complicated experience."

The Search Giant's Standpoint

Android users can presently use alternative marketplaces - though critics say they are not as smooth as Google's own Play Store.

The regulator's plan said Google may have to "modify the interface" of installing applications directly from online sources, as well as "eliminate barriers" when using third-party platforms.

"There appears to be no the rationale for the current classification," a Google policy executive remarked.

The representative said "the majority" of Google device owners use alternative app stores or download apps straight from a developer's website, and asserted there is a much wider selection of applications available for Google device owners versus those on Apple devices.

"Currently available are twenty-four thousand Google-compatible devices from thirteen hundred phone manufacturers globally, facing strong rivalry from Apple's platform in the UK," the representative continued.

Android is an open-source operating system, which means creators can utilize and develop on top of it for free.

The company contends this means it opens up market competition.

But advocacy organizations said restrictions on these companies' power in other countries "currently assist enterprises to innovate and providing customers more options".

"Their dominance is now causing real harm by limiting options for users and competition for businesses," stated a consumer advocate.